UPDATE 1-K+S ups budget for Canada potash project, delays start

Mon Apr 22, 2013 10:30am EDT
 
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* Cites higher expenses for equipment and personnel

* Plans to own, not rent, harbour installations in Vancouver

* Legacy mine to start production in mid-2016, not end-2015

* Shares down 3.3 pct, hit lowest in five months (Recasts, adds shares, CEO quote, background)

FRANKFURT, April 22 (Reuters) - German potash miner K+S AG has warned that a Canadian potash mine will absorb a quarter more investment and would not come on stream for about six months later than had been planned.

Its shares dropped 3.2 percent to 32.54 euros at 1347 GMT, making it the second-worst performer on Germany's blue-chip DAX index. The stock fell as low as 32.075 euros, its lowest since late November.

K+S is splashing out on developing the Legacy mine in Canada's Saskatchewan province in a bid to become less dependent on limited domestic reserves of the fertiliser ingredient.

Yet spending on mine would now be C$4.1 billion ($4.0 billion), up from a previous budget of C$3.25 billion, partly because K+S decided to invest in its own installations at the port of Vancouver where it had previously planned to rent, the company said on Monday.

The start of production would be delayed to mid-2016 from the end of 2015 as previously forecast, the world's fourth-largest potash supplier added.   Continued...